The Limits Of Abenomics
Bloomberg Businessweek Middle East|November 01, 2017

The prime minister’s policies have boosted factories in fukui prefecture. But not wages

Yoshiaki Nohara
The Limits Of Abenomics

On paper, Fukui, a prefecture on the western coast of Japan, looks like an advertisement for the policies of Prime Minister Shinzo Abe, who’s up for reelection on 22 October. The area boasts an expanding economy, one of the country’s lowest jobless rates, and the highest level of female employment in the nation.

Nevertheless, Chiyoko Yamamoto, a textile worker at Fukui Tateami Co., says she and her family have benefited little from four-plus years of Abenomics. Like most Japanese, she’s still waiting for the big wage gains the government has consistently promised. With her pay stagnant, she’s concerned about Abe’s plans to raise the sales tax from 8 per cent to 10 per cent. “It increases my expenses. That’s all I care about,” says Yamamoto, who’s been employed at Fukui Tateami for more than 20 years. “I can’t say my life is getting better.”

Fukui is a stronghold of the Liberal Democratic Party, which faces a weak and fractured opposition and is expected to retain power. Abe, who’s poised to become Japan’s longest-serving prime minister, has touted his economic record, with six straight quarters of growth, unemployment of less than 3 per cent, and an extended bull run that’s bid up Japanese stocks to their highest level in more than two decades. As evidence of his policy success, Abe has repeatedly pointed to the rise in the jobs-to- applicant ratio, which is now more than 1 to 1 in all of the country’s 47 prefectures.

This story is from the November 01, 2017 edition of Bloomberg Businessweek Middle East.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the November 01, 2017 edition of Bloomberg Businessweek Middle East.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM BLOOMBERG BUSINESSWEEK MIDDLE EASTView All
Golfing With The Enemy
Bloomberg Businessweek Middle East

Golfing With The Enemy

Did Donald Trump's executives violate the Cuban embargo?

time-read
10+ mins  |
August 16, 2016
Super-Rich Syrians Wait for War's End
Bloomberg Businessweek Middle East

Super-Rich Syrians Wait for War's End

Actor, author, playwright. Gill Pringle tries her hand at unravelling the mystery behind this enigmatic multi-hyphenate

time-read
10+ mins  |
July 01, 2016
Pam Codispoti
Bloomberg Businessweek Middle East

Pam Codispoti

The mastermind behind the industry-shaping Chase Sapphire Reserve Card sets her sights on banking

time-read
2 mins  |
January 16, 2018
This Time It's The Economy
Bloomberg Businessweek Middle East

This Time It's The Economy

President Rouhani’s budget sets offprotests from people angry about unemployment and inflation

time-read
5 mins  |
January 16, 2018
Saudi Prince Counts On Support Of Citizens
Bloomberg Businessweek Middle East

Saudi Prince Counts On Support Of Citizens

State-worker salary increases appeal to the people, but policy may throw the budget off track

time-read
3 mins  |
January 16, 2018
Stalin's Legacy Is Choking The Ukrainian Economy
Bloomberg Businessweek Middle East

Stalin's Legacy Is Choking The Ukrainian Economy

The government has resisted pressure to lift a ban on land sales, despite pressure from the IMF and investors

time-read
4 mins  |
January 16, 2018
Catastrophe Bonds Survive A Stormy Year
Bloomberg Businessweek Middle East

Catastrophe Bonds Survive A Stormy Year

The turbulence of 2017 couldn’t destroy a market for betting against disasters

time-read
3 mins  |
January 16, 2018
Riding The West Bank's Credit Boom
Bloomberg Businessweek Middle East

Riding The West Bank's Credit Boom

Increased consumer lending is creating a bubble in the West Bank

time-read
3 mins  |
January 16, 2018
You'd Be Crazy To Buy Pizza With Bitcoin
Bloomberg Businessweek Middle East

You'd Be Crazy To Buy Pizza With Bitcoin

Speculative fervour makes the cryptocurrency clumsy for commerce

time-read
3 mins  |
January 16, 2018
What If The President Loses His Party?
Bloomberg Businessweek Middle East

What If The President Loses His Party?

Trump has to figure out a way to work with Republicans in Congress, or the global economy may be at stake

time-read
6 mins  |
August 16, 2017